Special Regime Tax Base Items
During the calculation, T 4047522 API Spec. Mode VAT Base Entry is generated. The table is used internally by the system.
Meaning of Fields
Entry Type
values:
Entry Fee
For the Initial Fee of the Financing Contract
Financing & Insurance Margin
For Interest and Mass Insurance on Installments of Payment Schedule
Administrative Fee at the Regular End
For Contract finish cost amount for the fee invoiced from the General Terms and Conditions of the Contract). This fee does not apply
Selling price
For Sales Price from Payment Calendar Sales Price Line
Amount
Invoice amount for the item
applies only to the Entry Fee and the Administrative Fee upon regular completion
VAT Base Par. 66 Amount
The calculated amount of the VAT base according to the rules for the special regime, rounded to 2 decimal places mathematically.
VAT Amount Par. 66
Calculated VAT amount according to the rules for the special regime from the amount of the VAT base * VAT rate defined by the combination of VAT posting groups in the Financing Contract (VAT Busing-Posting Group and VAT Posting Group Special Mode – Tax), rounded to 2 decimal places mathematically.
Deploy Contract Lines
Functionality for deploying contract lines of type Payment for contracts in special VAT mode
Calculates Tax Base Excl. Principal (BaseAmount)
Calculates Tax Base Including Principal (TotalPayments)
Calculates Total VAT Amount (TotalVAT)
Calculate Coefficient (Coef)
ZTax Base Amount = Sum Interest + Sum Insurance + Selling Price + Initial Fee + Finish Cost Amount
Tax Base Including Principal (Total Payments) = Total Principal + Total Interest (Sum Interest) + Total Collective Insurance (Sum Insurance) + Selling Price + Initial Fee + Finish Cost Amount
Total VAT Amount = Base Amount x VAT Rate
VAT Rate = finds the VAT % of the VAT Posting Setup for a combination of VAT Posting Group and VAT Posting Group Special Mode – Tax from the contract
Coefficient (Coef) = Tax Base Without Principal (Base Amount) / Tax Base with Principal (Total Payment)
Subsequently, the function distributes the Total VAT amount minus the proportional part attributable to the initial activation fee and the regular completion fee to the individual lines of the payment calendar, including the down payment and sales price lines.
Rounding
When calculating partial VAT bases for a special regime, rounding takes place in the second decimal place. Rounding differences will be taken into account by the system as follows:
When calculating the VAT bases, it first calculates the VAT bases for the entry fee and the regular completion fee, which it rounds to 2 decimal places mathematically.
The remainder of the total base of the special VAT regime forms the basis for instalments and the selling price. The system rounds these bases according to the settings on the contract model – the Payment Rounding Code field. In the payment calendar, the rounding differences from the individual instalments and the sales price will be taken into account in the last regular instalment, the VAT Base for the Special Regime will be adjusted by the system so that the total sum of the partial bases from the individual lines corresponds to the total VAT base for the Special Regime.
Posting Contract Lines
Posting of contract lines in the special VAT mode is done in the same way as for a contract in the regular VAT mode.
It is charged according to OneCore Posting Settings:
Principal
without VAT
On the contract VAT Posting Group Principal
Setting up a G/L account for principal posting
Special Regime VAT Base
incl. VAT
When the field VAT setup for special mode = Incl. VAT is on the OneCore Posting Setup line, then the VAT posting group is applied to
Setting up an auxiliary G/L account (the goal is to post VAT only)
Special Regime VAT Base
without VAT
When the field VAT setup for special mode = Without VAT is on the OneCore Posting Setup line, then the VAT posting group is applied to the VAT
Setting up an auxiliary G/L account to reset the basis
Initial Fee upon Contract Activation
When a contract is activated, the system first checks the contract mode before creating an individual invoice. If the contract is in a special VAT regime, the system checks the table "Tax Base Items §66" to see if there is an entry of the Entry Fee type in the table. If so, the system will automatically generate an individual invoice for the entry fee according to the special VAT regime:
On an invoice line that is created from periodic sales lines (according to OneCore Settings, field Input Fee Standard Sales Code), the VAT product posting group changes according to the field VAT Posting Group Special Mode - Non-Tax from the contract header. The amount is filled in with the actual amount of the entry fee excluding VAT
creates 2 new lines on the invoice with the tax base for the special VAT regime:
the first line with the minus amount of the tax base for the special VAT mode, which will be posted to the account set for Payment source data = Special VAT mode base in OneCore Posting Setup. The VAT product posting group is copied from the contract header from the VAT Posting Group Special Mode – Non-Tax field. The amount is filled in with the recalculated tax base.
the second line with the plus amount of the tax base for the special VAT mode, which will be posted to the account set for Payment Source Data = Special VAT Mode Base in OneCore Posting Setup. The VAT product posting group is copied from the contract header from the VAT Posting Group Special Mode – Tax field. The amount is filled in with the recalculated tax base. From this amount, the VAT on the invoice will be calculated.
After the invoice is posted, the system sets the Closed = Yes flag on the Special Mode Tax Base Entry for the entry fee entry
Rounding
When calculating the partial VAT bases of the special regime, the rounding differences in the second decimal place occur as follows:
When calculating the VAT bases, it first calculates the VAT bases for the entry fee and the administrative fee at the regular termination of the contract, which it rounds to 2 decimal places mathematically.
The remainder of the total VAT base of the special regime forms the basis for instalments and the selling price. The system rounds these bases according to the settings on the contract model – the Payment Rounding Code field. In the repayment schedule, the rounding differences from the individual instalments and the sales price will be taken into account in the last regular instalment, the VAT base of the special regime of which will be adjusted so that the total sum of the partial VAT bases of the special payment regime corresponds to the total VAT base of the special regime.
Changes to a contract with a special VAT regime
Contract Transfer
If a contract under the special VAT regime is transferred to a new customer, the special VAT regime of the contract does not change, as well as the payment schedule remains unchanged.
If it was invoiced when the contract was transferred Transfer Fee, the generated sales invoice (individual) is taxed in the Normal VAT Regime (Fee Amount x Tax Rate)
Changes to the payment schedule
If there is another change in the payment schedule, e.g. an extension of the contract or a technical improvement of the subject matter of the contract, during the recalculation of the contract:
Items of the tax base of the special regime are updated
The entry for the posted entry fee remains unchanged
Other items are updated
A new coefficient is calculated
Payment Calendar Lines
Posted lines do not change
Unposted lines are updated:
The VAT base for the special regime is calculated by a new coefficient
The difference between the newly calculated base and the posted base is calculated from the posted lines of the payment calendar. This difference is included in the base on the last regular line of the payment calendar
The difference between the newly calculated base and the posted base is calculated from the posted entry fee. This difference is included in the base on the last regular line of the payment calendar
Example 1
Assignment
On the Financial Leasing Financing Contract with the Special VAT Regime, there is Entry fee, down payment entered and selling price.
On the Financed Object are entered Insurance Contracts with Insurance Type = Mail
Computations
Principal Amount Total 300,000.00
Total Interest 26,780.68
Insurance (collective) – third-party liability insurance 18,749.88
Insurance (bulk) – accident 22,500.00
Sales price 2,000.00
Entry Fee 800.00
Tax base without principal = 26,760.68 + 18,749.88 +22,500.00 + 2,000.00 + 800.00 = 70,830.56
Tax base with principal = 70,830.56 + 300,000.00 = 370,830.56
The new VAT Base for the special regime is calculated using the following coefficient:
Coefficient = Tax Base Without Principal / Tax Base With Principal
In our example:
Coefficient =70,830.56 / 370,830.56 = 0,1910052
Entry Fee
When the contract was activated, a sales invoice for the entry fee was posted.
On this invoice, there is a 1st line created from the set code of recurring sales lines. The line has been modified, the VAT product posting group from the Financing Contract has been used (VAT posting group for special mode – non-tax. The amount of the entry fee is charged without VAT.
At the same time, the system created new lines for the special VAT regime, where it used the posting group for the special regime – non-tax for the negative VAT line and the posting group for the special regime – tax for the positive VAT line
Thus, VAT is calculated only for the substitute base:
Entry Fee 800
Substitute base 800 x 0.1910052 = 152.80
VAT 152.80 x 21/100 = 32.08887
Advance payment
The same principle is used for down payment invoicing, with the only difference being that all three invoice lines are created using OneCore Posting Settings
VAT is calculated only on the substitute basis:
Down payment 60,000
Replacement base 60,000 x 0.1910052 = 11,460.31
VAT 11,460.31 x 21/100 = 2,406.6651
Regular Payment
In the case of regular payment posting.
Payment No. 001:
Principal + Interest + Insurance (Bulk) 6,009.88 + 1,400.00 + 1,145.83 = 8,555.71
Replacement Base 8,555.73 x 0.1910052 = 1,634.1888
VAT 1,634.1888 x 21/100 = 343.17965
Example 2
Assignment
The special mode financing contract has been extended by 12 months after the activation and posting of two regular instalments.
Computations
Principal Amount Total | 250 000,00 |
Total Interest | 22 317,44 |
Insurance (collective) – third-party liability insurance | 0,00 |
Insurance (bulk) – accident | 0,00 |
Selling price | 1 200,00 |
Entry Fee | 700,00 |
Tax base without principal = 22,317.44 + 0.00 + 0.00 + 1,200.00 + 700.00 = 24,217.44
Tax base with principal = 24,217.44 + 250,000.00 = 274,217.44
Coefficient = Tax Base Without Principal / Tax Base With Principal
Coefficient = 24,217.44 / 274,217.44 = 0,088314733
Entry Fee
When the contract was activated, a sales invoice for the entry fee was posted.
VAT on invoice:
Entry Fee 700.00
Substitute base 700.00 x 0.088314733 = 61.82
VAT 61.82 x 21/100 = 12.98
Advance payment
At the same time, a down payment from the payment calendar was posted during activation
VAT on invoice:
Down Payment 50,000.00
Replacement base 50,000.00 x 0.088314733 = 61.82
VAT 61.82 x 21/100 = 12.98
Regular Payment
In the case of regular payment posting.
VAT on Invoice - Payment No. 002:
Principal + Interest + Insurance (Bulk) 5,037.34 + 1,137.45 + 0.00 = 6,174.79
Replacement base 6,174.79 x 0.088314733 = 545.32
VAT 545.32 x 21/100 = 114.52
Contract recalculation after extension from 36 to 48 months
Posted lines do not change.
Unposted lines are recalculated using the new coefficient.
Principal Amount Total | 250 000,00 |
Total interest – change due to extension | 27 465,52 |
Insurance (collective) – third-party liability insurance | 0,00 |
Insurance (bulk) – accident | 0,00 |
Selling price | 1 200,00 |
Entry Fee | 700,00 |
|
|
Tax base excluding principal = 27,465.52 + 0.00 + 0.00 + 1,200.00 + 700.00 = 29,365.52
Tax base with principal = 29,365.52 + 250,000.00 = 279,365.52
New Coefficient = 29,365.52 / 279,365.52 = 0,105115048
New VAT Base for Special Regime = (Principal + Interest + Mass Insurance + Selling Price) x New Coefficient
For regular payments = 4,675.89 x 0.105115048 = 491.5064011
For a line with a selling price = 1,225.00 x 0.105115048 = 128.7659336
For posted lines and posted entry fee, the difference between the original basis and the new basis is calculated.
Difference (Installments) = New VAT Base for Special Mode - Posted VAT Base for Special Mode
For regular payments = 649.0433463 – 545.32 = 103.7433463
For down payment line = 5,255.752392 – 4,415.74 = 840.0123921
Total Difference (Payments) from Posted Lines = 840.0123921 + 2 x 103.7433643 = 1 047,499085
Difference (Fee) = New VAT base for special mode - posted VAT base for special mode
Entry Fee 700.00
Posted replacement base 700.00 x 0.088314733 = 61.82
New replacement base 700.00 x 0.105115048 = 73.58
Difference (fee) = 73.58 – 61.82 = 11,76
Difference (total) = Difference (payments) + Difference (fee) = 1,047.499085 + 11.76 = 1 059,259085
This difference is added to the base on the last unaccounted regular payment, so the total VAT Base for Special Regime on that payment line is = 491.51 + 1059.26 + = 1550,77
This base can be further adjusted for rounding differences (see chapter Rounding above)